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September 21, 2010

Changes @ Kardia and BioBiz Center

Here's some from a piece I wrote about Kardia Health Systems' restructuring and what it means for the Minnesota BioBusiness Center where the company leases 7,435 square feet.The full article is posted here.

Kardia licenses technology from Mayo Clinic.

Rochester Developer Gus Chafoulias is at the helm of Kardia.


A Rochester medical imaging firm based on Mayo Clinic research is reinventing itself and that means it needs to change its lease in the Minnesota Biobusiness Center.

Kardia-Logo-J260W The Rochester City Council OK'd changes to Kardia Health Systems'  five-year lease it signed in 2008 for 7,435 square feet of space on third floor on the Biobusiness Center, 221 First Ave. S.W.

That lease started at $14.75 per square foot for the first year and increased by 4 percent each year, culminating at $17.25 in 2013. The company also received a a $75,000 interest-free loan from the city to cover finishing costs to prepare the space for use.

Now changes mean Kardia no longer needs the space.

"Kardia has undergone internal restructuring and has become a virtual company with its principal employees located in Minneapolis and Denver," according to a request submitted to the city council.

It markets Internet-based software services used primarily by cardiologists to study data from echocardiogram tests. Kardia licenses technology from Mayo Clinic, which also owns equity in the company.

051509biobusinesscenteratnightWhile the medical imaging services firm will not need the Biobusiness Center, another related company — Strategic Medical Innovation Partners — is interested in taking over some of the office space. Strategic Medical, formerly known as Healthcare IPP Partners, is owned by many of Kardia's lead investors.

Kardia is asking that the Rochester-based Titan Development Group, led by local business developers Gus and Andy Chafoulias, be allowed to sub-lease any space that Strategic Medical does not use.

Gus Chafoulias is an investor in Kardia as well as serving as the chairman of its board of directors.

"Parts of Kardia will still be here and parts will be virtual," says Chafoulias, who has an office in that part of of the building.

Chafoulias says the Titan Development staff is moving from their current offices by the Rochester International Airport into the Kardia space.


Oh say it isn't so! Another Gus Chafoulias project failing or somehow taking City Money and lining Gus's pockets, what a surprise!

When reading about the movements of Chafoulias's many intertwined companies, does anyone else ever feel like they're watching a guy running a shell game on a New York City sidewalk?

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